There are different types of term you may want to consider when you get a term life insurance quote online. It is recommended that you be familiar with the different aspects of policies and coverage offered.
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Nonguaranteed term life is characteristically a one year policy that pays out if you die during that year. Each time you purchase one of these policies, you'll need a medical exam. If your health declines, you may need to pay significantly more the next time around or you may be denied coverage altogether.
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Annual renewable term is a one year policy that permits you to renew each year with no new medical exam. However, these policies are cheap when you are young, but prices rise significantly with age. It is important for you to fully understand this aspect when you get a term life insurance quote online.
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Level premium term policies have premiums that remain the same for typically five, ten or twenty years. If, somewhere during the course of the policy you decide you don't need the coverage, you can drop it. But when the policy finally expires, if you want to renew, you'll again have to go through a medical exam. It can be more difficult to qualify and much more expensive if you make the cut. This is why buying a level premium term policy that also has a convertible term is a better option.
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With a Convertible term policy, you will be able to pay more money to change your term policy into a permanent one. Most people covert either when the cost of the policy escalates or when they suffer a health related problem. But if this is something you would like to do, the earlier you make the conversion, the better. You can do the conversion gradually as your salary grows over the years.
